Landlords — are you worried about the rising costs of letting your property?

With all the talk about cost-of-living issues and the fact that prices for just about everything are rising noticeably, many landlords are concerned about whether their rental income will be able to cover their increasing costs, particularly with regard to mortgage interest rates.

Let’s look at the big picture.

The key factor to consider is that there’s a chronic imbalance between supply and demand in the rental market. People are looking for homes to rent and there just aren’t enough properties to fulfil that demand. In our area, village homes and larger (3–4 bedroom) properties are in particularly short supply. This imbalance inevitably means higher rents, but also that tenants are more likely to stay for longer periods because of the difficulties of finding an alternative property.

In fact, the last 12 months or so have seen a significant acceleration in rent rises, with rents increasing by an average of £115 per month over the last year. This means that landlords can feel reassured that the increase in their costs will be offset by rising rents. Even assuming the current rate of acceleration is unlikely to be sustained, rents are projected to rise at least in line with the cost of living. Landlords can relax.

If you have questions about the rental market or you are thinking of letting a property, please call us on 01608 695252or go to our web page www.distinctpropertyconsultants.co.uk where you can see our services and request a consultation.  

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